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Question 1

Is past consideration sufficient to support a promise?

Answer 1

No

Question 2

If you contract to pay someone $900 a week and then a few months later, you change it to $1000 a week, is that enforceable?

Answer 2

No, there’s no new consideration and the offeree is still doing the same thing he originally agreed to

Question 3

If you want to have a new contract for more money, and you want it to be enforceable, what can you do?

Answer 3

Rescind the old contract and enter a new one

Question 4

Why can you not have a simultaneous rescission and new agreement?

Answer 4

Because it violates the pre-existing duty rule since parties intended the rescission to be contingent on a new contract

Question 5

If a promise looks illusory because there’s no definite undertaking, why is it not illusory?

Answer 5

Because of a superimposed obligation to use reasonable and good faith effort. Ie: agents

Question 6

Why are output or requirement contracts under the UCC not illusory?

Answer 6

Because of obligation to produce a reasonable quantity based on prior output/requirements in good faith

Question 7

What is a satisfaction condition?

Answer 7

Promise subject to satisfaction

Question 8

What is an example of a satisfaction condition?

Answer 8

Offering to pay someone to paint your picture, but only if you are satisfied

Question 9

Why are satisfaction conditions not illusory?

Answer 9

Because of an obligation of good faith, so you can only not pay if you honestly and in good faith were dissatisfied

Question 10

If a debtor orally promises to pay a barred debt, why is that not enforceable?

Answer 10

Because it must be in writing, or part payment must have been made to be enforceable

Question 11

How can part performance substitute for a signed writing?

Answer 11

If debtor acknowledges the past debt in a way that implies he will pay it, and makes a partial payment, then the debt can be enforced

Question 12

Does a promise to pay a debt discharged by bankruptcy need to be in writing?

Answer 12

No

Question 13

Why do unilateral contracts not have mutuality of consideration?

Answer 13

Because the offeree is not bound to do anything, even if he starts performance, he doesn’t have to finish

Question 14

Do bilateral contracts need mutuality to be enforceable?

Answer 14

Yes, both parties must be bound, and if one isn’t, then neither is

Question 15

What is the consideration in a bilateral contract?

Answer 15

The promised performance

Question 16

What is forging when it comes to bilateral contracts?

Answer 16

If there is no consideration on one side of a bilateral contract, performance can be forged into a good unilateral contract

Question 17

If a party makes a promise of alternative performances, must each one be detrimental?

Answer 17

Yes, and if not the whole contract is void

Question 18

What are conjunctive contracts?

Answer 18

When two things must happen

Question 19

Under a conjunctive contract must both promises be detrimental?

Answer 19

No, only one has to be detrimental

Question 20

If you agree to give someone your car if they pay a debt they owe you and paint your fence, is that enforceable?

Answer 20

Yes, it doesn’t matter that they already owed you money, painting the fence is consideration, and both must be performed

Question 21

What is an output contract?

Answer 21

Seller agrees to sell all of its output of a certain item to the buyer, who agrees to buy it from the seller

Question 22

What is a requirements contract?

Answer 22

When a buyer agrees to buy all of his requirements of a stated good from the seller, who agrees to sell that amount to the buyer

Question 23

Where does the consideration come from in output/requirements contracts?

Answer 23

From the buyers’ surrender of power to contract with others

Question 24

If a new promise to perform a duty is made under a voidable contract, is that enforceable without new consideration?

Answer 24

Yes

Question 25

If a 16-year-old buys a boat, and when she turns 18 she affirms the contract, is that enforceable?

Answer 25

Yes, because it is a new promise and doesn’t need consideration (since making new promises to perform voidable contacts are enforceable without consideration)